Discuss the organization-environment relationship

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 ORGANIZATION-ENVIRONMENT RELATIONSHIP

There is close relationship between organization and environment. This relationship involves the inter relationship and interaction between the functions of an organization with the external and internal environment. Every activities of organization are related with such events. A business system consists of input-process-output system which can be expressed in the following figure:



Organization has exchange relationship of input and output with environment. Business organization receives the inputs from external environment and transformed into output through the managerial process. Outputs are also served into environment. Feedback is also another important component which establishes the effective relationship between the environment and organization. Therefore organizations must respond to the environment. Without managing and forecasting the environment situations effetely, organizational goals cannot be achieved easily. All the managers should understand the relationship between organization and environment. It is the very important to organization due to the following continuous reasons:

1. It should maintain the dynamism through adaptation to environmental changes 

2. The analysis of environmental relationship helps to foster strategic thinking in the organization. Opportunities and threats to the organization can be identified.

3. The analysis of organization-environment relationships helps to understand and form pressure groups which can be used for making lobby on behalf of business organization to influence laws and government policies.

4. It helps an organization to learn what competitive organizations are doing on business. Strategic plans can be formed effectively.

5. It enables the organization to foresee the impact of environmental change and its stability.

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